Economics Supply And Demand Questions
The assumptions of public choice theory include:
1. Rationality: Individuals are assumed to act in their own self-interest and make rational decisions based on their preferences and available information.
2. Self-interest: Individuals are motivated by their own self-interest and seek to maximize their own utility or well-being.
3. Utility maximization: Individuals aim to maximize their own satisfaction or welfare, and their choices are based on the perceived benefits and costs.
4. Limited information: Individuals have limited information and knowledge about the consequences of their choices, and they make decisions based on the information available to them.
5. Political process: Public choice theory assumes that the political process is driven by individual choices and interactions, and that political actors are motivated by their own self-interest.
6. Competitive behavior: Public choice theory assumes that individuals and groups engage in competitive behavior to pursue their own interests and influence the political process.
7. No benevolent government: Public choice theory assumes that government actors are not necessarily benevolent or always act in the best interest of the public, but rather are driven by their own self-interest.
These assumptions help to analyze and understand the behavior of individuals and groups in the political and economic decision-making process.